“If you don’t know where your going how will you know when you get there?” As a business owner one must consider business succession planning from both a short and long-term perspective and develop a plan that meets your specific business goals.
For most business owners, their business interests are their most important assets. We work with entrepreneurs to develop the strategy and implement the tools which will allow them to transition their business interests to their children, other existing owners or to unknown future buyers. Each strategy is customized to meet the specific goals of the owner and takes into account various tax and operational considerations.
Each legal entity has its own process and required documents for establishing and maintaining a succession plan. Again, we encourage you to seek the input of your professional team when evaluating these events and their consequences.
The following considerations need to be taken into account when creating a business succession plan.
- Management: How will changes in the current management structure and business processes affect your products and services?
- Customer Service: What processes and safeguards are in place to ensure the quality and performance of your products and services, and to meet new demands brought on by new or existing customers?
- Resources: What additional resources (e.g. contractors, employees, equipment, etc) will you need to meet the changing needs or your customers?
- Ownership: How will you prepare for the loss, transition or addition of the owners? What requirements and checks and balances are in place for the new ownership?
- Valuation: How will you prepare for the increased or decreased valuation of your business, and is there a plan for the sale or transfer of the assets or equity?
- Taxation: What are the tax consequences to the owners and the business in the event there is a change in ownership, sale of the assets or other organizational change?
- Liability: Who will be liable for the risks associated with new ownership, new products and services or other business transactions?
- Environment: What will happen if market conditions or the state and federal laws that govern business entities change?
Do you need help getting started or updating your business succession plan? If so, please contact us at email@example.com or call 248-481-4000 today to help you get started.